Wednesday, December 21, 2011

Christmas treat by lowering power rates

by Cristina Arzadon

The Ilocos Norte Electric Cooperative (INEC) is giving its consumers a Christmas treat by lowering power rates by P0.60 per kwh (kilowatt hour).

The adjusted rate will be reflected in the December billing making power rates at P8.80 per kwh from a previous rate of P9.40 per kwh.

Engr. Renato Balintec, Inec general manager, said the new power rate is a result of lower power costs that INEC bought from power suppliers like the spot market.

"This is also in line with the principle on supply and demand such that when there is an oversupply and under consumption, the result is lower power cost," Balintec said.

"For example, because of traditional Holiday vacations, we expect lower power consumption when government offices and other businesses close down for the Christmas and New Year breaks," he added.

He noted that the cause for high cost of electricity in the previous months was due to a power shut down of the Malampaya Gas which supplies power to major areas in Luzon including Metro Manila.

"When Malampaya gas shut down, our rates increased by P0.40 because big power plants stepped into the shoes of Malampaya to produce electricity that it should have generated. These plants were using expensive crude oil," he said.

Balintec said Malampaya has resumed its operations resulting in a reduction of power costs.

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